Powers wins $356K in settlement with village

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Marsha Powers

HOLLY, Michigan – After more than a year of ongoing litigation, the village of Holly can officially put the matter of Marsha Powers versus the village of Holly behind it.

Powers filed a lawsuit with the Genesee County Circuit Court against the village of Holly on Sept. 10, 2010. Holly Village Council members fired Powers without cause three days earlier after she turned down council’s offer to take an early retirement with full benefits in exchange for her giving the village of Holly a release from any legal claims she may have had.

In addition to claiming wrongful termination in her lawsuit, Powers' complaint pertained to a Whistleblower Protection Act Violation, specifically section 15.362 that discusses, “Discharge threats or discrimination against employee for reporting violations of the law.”

While a Final Order of Judgment was filed on Dec. 12, Village Manager Jerry Walker was unable to discuss the exact amount of the settlement until the village officially received the Settlement Agreement and Release of All Claims this week, thus becoming subject to the Freedom of Information Act.

In the agreement, the village of Holly and its insurer agreed to pay Powers $356,500. Additionally, the village of Holly will provide 65 percent of the health care premium for a single subscriber under the retiree health care plan beginning no later than Jan. 1, 2012 through the end of the calendar year in which Powers attains the age of 65.

On Dec. 15, Village Council members adjusted the budget and eliminated two village staffing positions for a total budget savings of $111,871. Additionally, council allocated $19,629 from the village’s fund balance for a total of $131,500.  The village’s insurance carrier picked up the remaining $225,000 in the settlement.

"Certainly as a village, we're happy to have this litigation completed," Walker said. "Members of the council took all the necessary steps in resolving the issue in the very best interest of the village."